ST : Don't sell your HDB flat, says MM Lee

Nov 14, 2010

Don't sell your HDB flat, says MM Lee

It's stupid to sell and then hope to get a rental flat; flats are assets that will be upgraded and rise in value

By Zakir Hussain, Political Correspondent



MM Lee with (from left) fellow Tanjong Pagar GRC MPs Sam Tan, Indranee Rajah, Koo Tsai Kee, Lui Tuck Yew and Baey Yam Keng at an event marking the completion of a covered linkway in Jalan Membina, and the annual Tree Planting Day in the GRC. -- ST PHOTO: NEO XIAOBIN

HDB flat owners should not sell their flats, as they are assets that will appreciate in value year after year, said Minister Mentor Lee Kuan Yew last night.

Addressing some 500 residents at a constituency event in Tanjong Pagar GRC, he said: 'I urge you not to listen to the estate agents and sell it and go and rent a flat because that's a stupid thing to do.

'You sell it, you may not get a rental flat for a long time. And you cannot gain from a rental flat... Please remember that.'

Mr Lee's call comes shortly after the Government took steps to address the trend of homeowners who - propelled by record selling prices - are trying to sell their flats to make a quick profit.

To underline the need for financial prudence, the Housing Board on Nov 1 introduced a seven-day cooling-off period for people intending to sell their HDB flats.

Mr Lee was speaking at the annual Tree Planting Day in the group representation constituency. The event also saw a ceremony to mark the completion of a covered linkway in Jalan Membina in Tiong Bahru.

With the linkway up, residents from 1,306 households in eight blocks of flats - 25A to 27B - can walk from their precinct to nearby coffee shops, sheltered from the elements. It is part of a series of covered walkways that, by the end of this year, will allow them to walk directly to Tiong Bahru MRT station without an umbrella.

Half the households were also resettled from older flats in the Bukit Ho

Swee area as part of the Selective En Bloc Redevelopment Scheme.

In his off-the-cuff speech, Mr Lee assured the residents that the Government will keep on upgrading old flats and estates to make them better.

He took the opportunity to drive home the role that the Government's home-ownership policy has played in Singapore's continued stability.

'No other country in the world has every family own their own flat or their own place,' he said.

'If we had not done that from the earlier days, we would not have today's stable and peaceful Singapore.

'Everybody has a piece of property which has increased in value every year. The infrastructure grows, the economy grows, the value of your home can go up,' he added.

Mr Lee noted how flats 30 years ago cost $30,000 to $40,000, but the same flat today, after upgrading, can fetch $300,000 or more.

He told the residents: 'I congratulate all those who have kept your flats, and I urge those who have got old flats, keep them. Your upgrading programme will come, and you will have a much more valuable piece of property.'

And part of that value comes from beautifying the environment.

Asked by the media why he made it a point to attend tree-planting ceremonies every year for the past 39 years, Mr Lee said: 'We've got to keep on planting, otherwise it becomes a concrete jungle.'

'Because of tree planting, the bushes and shrubs, we have a green environment which makes for a refreshing city.'

zakirh@sph.com.sg

ST : Husband and wife sold on real estate

Nov 14, 2010

me & my money

Husband and wife sold on real estate

Their team of property agents is doing so well that they can live on passive income alone

By Lorna Tan, Senior Correspondent



Mr Kelvin Fong and his wife Janet at home with their daughters, Chloe (left) and Carlyn. The passive income generated by the commissions from their PropNex team of agents allows them to spend more time together as a family. -- ST PHOTO: MARYANNE TAN

In 2007, Mr Kelvin Fong and his wife Janet Lim - both real estate agents with PropNex - achieved their first million in sales commissions.

Mr Fong, a senior associate district director, went on to become the No. 1 team leader a year later when his team of 1,200 agents earned $13 million in commissions. His team, Power Negotiators, brought in $28 million last year, which ensured his reign as the No. 1 team leader.

Mr Fong, 35, now earns as much as $30,000 a month in passive income from overriding commissions from his team.

But in 2001, he didn't even have $5,000 to pay for the cash portion of the downpayment for his matrimonial home, a four-room HDB flat in Woodlands. He resorted to borrowing the amount from his father-in-law. The loan was repaid in instalments by 2003.

The purchase of the flat led the couple to become property agents. In an effort to earn extra income, they started out as part-time telemarketers for property agents in 2001. Madam Lim, now 36, became an agent a year later and Mr Fong followed suit in 2003, leaving the air force where he had served for six years.

An electrical engineering graduate from Singapore Polytechnic, he studied part-time while in the air force and graduated with a Bachelor of Business Administration degree in 2001 from La Trobe University, Australia.The couple now have two daughters, four-year-old Chloe and 11/2-year-old Carlyn.

Q Are you a spender or saver?

Because of my childhood experiences, I'm very careful with my money and I don't spend on unnecessary things. I believe in investing in assets that will grow.

However, I do set aside some money for family holidays, so I can spend quality time with my family after working so hard. I save about 30 per cent of my income for cash flow and invest 50 per cent in various investment vehicles, including my businesses, and spend the rest.

Q How much do you charge to your credit cards every month?

I charge about $10,000 a month to my cards. I have four cards and I pay my bills in full` every month. I withdraw about $500 a week from the ATM.

Q What financial planning have you done for yourself?

The team (Power Negotiators) in PropNex is an investment that my wife and I have built up together. It has helped us generate a good flow of passive income monthly so that we can choose not to do any sales.

Janet and I love this job so much that we will continue to serve our personal clients. We've spent $150,000 promoting the team since 2004.

I also bought insurance to provide my family with sufficient protection. I have two whole-life plans and one endowment policy. The yearly premiums are about $14,000. When they mature, the projected amount is about $1.5 million.

We've about $160,000 invested in stocks, mostly blue chips such as CapitaLand and SGX. Recently, I invested $50,000 in education and training firm Zest Consultants with some partners. The firm aims to teach property investors to be more knowledgeable in real estate investing.

Q Moneywise, what were your growing-up years like?

I am an only child. About a month after I was born, my parents placed me with my grandparents who brought me up until I was 21 years old. I grew up in a three-room HDB flat in Commonwealth with my grandparents.

My parents had to make a living so they couldn't take care of me. I saw them only on weekends when they visited me after work.

That made me realise the value of money. My father was working in a photo shop as an assistant and my mother was a waitress. I would go to my parents' three-room HDB flat in Ang Mo Kio once a week.

I was an independent child. I worked during my school holidays to earn my own pocket money and saved up for a rainy day. I took a bank loan to finance my part-time degree course during my days as a regular in the air force. I guess this is why I believe so strongly in investments.

Q Please share some property tips.

One of the key points in making a sound property investment is knowing what you can afford after taking into consideration the capital gain and rental yield potential.

I advise my clients on committing to a sale or purchase only after I have worked out their risk factors and potential profit gain.

It does not matter whether the property has a 99-year lease or is freehold. The most important factor is the location as land is scarce here.

Good properties at good locations will always have strong potential upside even during a downturn. Their prices may drop but when the market rebounds, they will be the first to move upwards in price compared to others.

One analysis that I do for my clients is to chart the history of the property. This helps me to see what the upside is and whether it is worth it to buy or sell.

Q What property do you own?

I own a four-room HDB flat in Rochor. We bought it for $313,000 in end-2006 and it should be worth more than $500,000 now. I can't buy private property now as I had taken a $40,000 grant to buy my HDB flat. I can invest in private property only after I have lived in the flat for more than five years.

I bought my parents a 1,033 sq ft unit in Balmoral Road for $1.7million in March as I want to enrol my daughter in Singapore Chinese Girls' School nearby. It will be more convenient for her and my parents as they are helping to take care of her. The value of the property remains the same.

Other properties that I bought for my parents include a 980 sq ft apartment at Tessarina in Bukit Timah. I bought it for $1 million and sold it for $1.1 million.

Another good deal was a 1,055 sq ft apartment at Robertson 100 which I bought for $1.15 million and sold for $1.48 million. Both properties were bought and sold in 2007.

Q What's the most extravagant thing you have bought?

In 2008, I bought an Audemars Piguet Royal Oak Offshore watch worth $35,000 for my wife for Christmas. It is a woman's watch and is limited to 100 pieces.

Q What's your retirement plan?

My retirement plan is to have a strong flow of passive income from my team and accumulate assets that will also generate passive income.

I believe that if my investment channels can provide us with $30,000 in passive income per month, it will be sufficient for my family. I want to spend more time travelling with my family.

My target is to achieve a consistent flow of passive income of $30,000 when I'm 40.

Q Home is now...

My Rochor flat.

Q I drive....

A black Audi A6.

lorna@sph.com.sg


--------------------------------------------------------------------------------

WORST AND BEST BETS

Q My worst investment to date...

My worst investment was buying 40 lots of a penny stock (Advance SCT) in 2007 based on hearsay.

It was trading at 40 cents per share then. I did not understand what I was buying nor did I check the historical performance of the stock.

Now the stock is worth less than five cents.

The lesson I learnt is that we must understand the fundamentals of the stock, instead of relying solely on tips. I'm still holding on to the stock.

Q My best investment to date...

My best investment to date is this job as it has helped Janet and myself achieve our first million at the age of 32 - something which both of us never imagined was possible.

Janet was the No. 1 producer last year at PropNex. She also received the IEA (Institute of Estate Agents) Top Achiever Award 2009.

The next best investment is my team in PropNex - Powerful Negotiators.

We have been the No.1 team since 2008, thanks to my dedicated team leaders and members.

Our team's group sales in terms of commissions have been growing since 2007, from $10 million to $13million in 2008 to $28million last year.

We have already achieved more than $28million this year.

ST : Nan Chiau High to become SAP school

Nov 14, 2010

Nan Chiau High to become SAP school

By Leow Si Wan

From January 2012, Nan Chiau High School will become the 11th Special Assistance Plan (SAP) school.

The school in Sengkang will join the 10 current SAP secondary schools - which include Anglican High, Catholic High and Dunman High - in nurturing a conducive environment for the learning of the Chinese language and culture.

Yesterday, Education Minister Ng Eng Hen, the guest of honour at the Singapore Hokkien Festival held at the Singapore Conference Hall, said: 'The school will build on its good academic track record and strengths in Chinese language-related activities to enhance its SAP programme over the next few years.'

Dr Ng, who said the Education Ministry (MOE) had studied the need for another secondary SAP school, added that the percentage of O-level students taking Higher Chinese had gone up from 17 per cent in 2000 to 28 per cent this year.

'With the growing number of students taking Higher Chinese, it is timely for us to establish an additional SAP school to support these students to pursue Chinese to as high a level as they are able to attain,' he said.

Nan Chiau, a school under the Singapore Hokkien Huay Kuan, is the first school to join the SAP family in 10 years.

Nine of the present SAP schools were established in 1979, while Nan Hua High School became one in 2000.

Dr Ng cited Nan Chiau's good academic track record, strong Chinese culture and high proportion of students taking Chinese as Mother Tongue Language (MTL) as some reasons for its selection.

He added that the school - which is also a Centre of Learning for Chinese in the North zone - will provide an additional option for students in the north-east to further their interest in and aptitude for the Chinese language.

The school also offers a wide variety of co-curricular activities related to Chinese culture, including Chinese orchestra, calligraphy and Chinese dance.

MOE will work with the school to facilitate its transition into a SAP school.

Nan Chiau will continue admitting Normal course students and those taking non-Chinese MTLs for next year's Secondary 1 intake. From 2012, the school will accept only Express course students taking Chinese or Higher Chinese as MTL. The Normal course will be phased out over five years.

Dr Chin Chee Kuen, executive director of the Singapore Centre for Chinese Language, set up last June to fine-tune the way Chinese is taught in schools, said the establishment of another SAP school would be beneficial to the education scene.

He said: 'China's influence will continue to grow, and parents know that it is important for their children to master the language.

'With Nan Chiau, there will be more opportunities for our students to study the language in a conducive environment, so this is good news.'

ST : HDB raises $2.38m for charity

Nov 14, 2010

HDB raises $2.38m for charity

By Jessica Lim

As part of its 50th anniversary this year, the Housing Board (HDB) has raised $2.38 million for charity.

Canvassed over two years, it is the highest amount the HDB has contributed to charity at any one time. The sum was announced at its first charity dinner last night, attended by President S R Nathan and his wife. A commemorative book - Our Homes: 50 Years Of Housing A Nation - was launched at the same event.

Most of the amount raised ($2.3 million) will go to charities under the Community Chest, including the AWWA Community Home for Senior Citizens and the Ang Mo Kio Family Service Centre. The rest will go towards a mini-van and herb garden for the Canossaville Children's Home, which was adopted by the HDB in 2001.

The amount raised far exceeded the target of $500,000. The top sums came from the charity dinner itself, where close to $830,000 was raised, and the HDB Charity Golf tournament on July 18, which raked in about $675,000.

HDB chairman James Koh Cher Siang said last night that numerous charity bazaars and online donation drives were held to raise the record sum.

Minister for National Development Mah Bow Tan thanked donors and HDB staff at last night's dinner at The Ritz-Carlton.

In a speech, he spoke of HDB's achievements over the years and contributions from leaders like Minister Mentor Lee Kuan Yew and the board's founding chairman, the late Mr Lim Kim San. It was MM Lee who started the Home Ownership Scheme.

Touching on the importance of HDB's role in community building, Mr Mah said it should strive to meet the rising aspirations of Singaporeans but also keep in mind the importance of building cohesive communities.

'If we all live in nice-looking flats but lose our cohesiveness as a community, and as a society, then we are in trouble,' he said, adding that there must be more initiatives to 'green' estates in Singapore and develop more eco-precincts.

Another key achievement on the horizon, he said, is when the board hands over the keys to the owner of Singapore's 1 millionth public flat.

'Five decades, 1 million flats. No other country in the world has matched what Singapore has achieved in terms of housing a new nation from scratch,' he said.

Our Homes: 50 years Of Housing A Nation, which includes personal accounts from people who were instrumental in shaping our public housing, will be available at the HDB Hub from Tuesday at $50 a copy.

ST : Liat Towers' pop-up flood barrier ready

Nov 14, 2010

Liat Towers' pop-up flood barrier ready

By Victoria Vaughan



Finishing touches were carried out on the barrier outside Liat Towers on Friday to ensure it lies flat against the pavement when not in use. When activated, it will form a 36m-long and 90cm-tall wall against flood waters. -- ST PHOTO: RAJ NADARAJAN

The pop-up anti-flood barrier at Liat Towers is now 'push-button'ready. The shopping mall was one of the worst-hit in the Orchard Road floods earlier this year.

On Friday, the mall's security staff were handed the keys to activate the barrier, a first for Singapore, in the event of a heavy flood.

When set in motion, flaps like those on an airplane wing will rise until vertical - and form a 36m-long and 90cm-tall sealed barrier against flood waters. The project cost the building management about $200,000.

Finishing touches were carried out on Friday to ensure that the barrier, when lowered, is flat against the pavement so as not to cause shoppers to trip.

This is the first time that the flood control method is being used in Singapore, said Parafoil Design and Engineering, the company that designed it.

Mr Chik Hai Lam, a supervisor at Goldvein, which owns Liat Towers, said: 'The barrier should do its work, and there shouldn't be any more flooding. We have tested it since Wednesday, and when it is raised, the seal between the panels is quite tight and they are well aligned.'

Tong Building, Lucky Plaza and Delfi Orchard were also affected during the Orchard Road floods.

A Lucky Plaza spokesman told The Sunday Times that it has engaged consultants to help further improve the drainage system to handle flood waters.

The management 'is now in the process of discussing with consultants the PUB's recommendation of installing flood barriers', said the spokesman, who declined to reveal further details.

No one from Tong Building was available for comment, but some tenants said that there has been talk of installing barriers. Physiotherapist Samuel Kan, who works at Bodyworks Studio there, said: 'Now when it rains, the management will send someone down to the carpark to monitor the water levels.'

Delfi Orchard declined to comment. Some tenants there said they have yet to receive any notice of flood prevention measures.

PUB, the national water agency, has awarded a tender to raise Orchard Road by an average of 30cm. Work will start in the last week of the month and is expected to be completed in the second quarter of next year. While most retailers welcome the move, some question if it would suffice.

Miss Goh Wee Ling, spokesman for fast-food chain Wendy's, a basement tenant at Liat Towers, said: 'Our outlet is in a sunken area. Logic dictates that the water will flow down. How will raising the road prevent this?'

Her concerns were echoed by others, like Miss Mindy Ong, supervisor for Sinma at the basement of Lucky Plaza: 'We are not sure if raising Orchard Road will affect the shops along this stretch.

'If it rains heavily, we watch the road and move things off the floor if we need to.'

ST : Can Potong Pasir afford lift upgrade?

Nov 13, 2010

Can Potong Pasir afford lift upgrade?

PAP grassroots adviser says no but opposition MP says yes

By Teo Wan Gek

A DING-DONG battle of words has erupted in Potong Pasir over whether there is enough money to provide lift upgrading for 22 blocks of flats in three precincts.

Mr Sitoh Yih Pin, who announced five days ago the Lift Upgrading Programme (LUP) for the second batch of flats in

the ward, is now expressing doubts that its town council has enough in its coffers to upgrade the lifts.

But Mr Chiam See Tong, the opposition MP of the constituency, feels otherwise.

'We definitely have enough money. The programme won't start so soon. Meanwhile, we are collecting money through service and conservancy charges,' he told The Straits Times after his Thursday Meet-the-People Session.

But Mr Sitoh, who is the People's Action Party's (PAP) grassroots adviser in the opposition-held constituency, said: 'Given the state of the Potong Pasir Town Council's balance sheet, unless there is a dramatic increase suddenly, it is impossible that it will be able to afford the LUP.'

Citing its latest annual report, Mr Sitoh, who is an accountant, pointed out that the council has $4.2 million in its residential sinking fund - the pool of money that can be used to co-fund the LUP in all its six precincts.

On average, a precinct needs $2 million to $3 million for lift upgrading.

With the 22 blocks in three precincts, the total would add up to between $6 million and $9 million.

This is on top of the first precinct with nine blocks that was offered LUP last year. At that time, Mr Sitoh had already raised questions about the town council's ability to pay for the LUP in all its precincts.

Other than LUP, money in the sinking fund can be used to pay for cyclical maintenance works, such as re-roofing and rewiring.

Mr Sitoh said Potong Pasir had not had any major rewiring exercise in the last 26 years. It is 'a big-ticket item that could run into the millions', he added.

If its financial capability was in doubt, then why did he make the announcement, only to dash residents' hopes so soon after?

He gave a reply that indicated he could be standing in the ward where he was defeated twice by Mr Chiam, who now plans to hand it to his wife to contest in the next election as he moves to contest a group representation constituency (GRC).

Mr Sitoh told The Straits Times: 'Assuming the general election is within the next six months, whoever is elected MP of Potong Pasir will have to solve the problem.

'If I am the candidate and am elected MP of Potong Pasir, this will become my problem.'

He also said that from Monday, for one week, he will make daily door-to-door visits to residents of the first nine blocks to be offered LUP, to explain and get feedback on the upgrading, which has not been finalised.

The visits will not end after the one week, he said, and added: 'You will see me there every day for a long, long time.'

The LUP is heavily subsidised by the Government, with residents and town councils each co-paying between 5 per cent and 12.5 per cent of the cost.

Meanwhile, the other opposition-held ward to be offered LUP is in a healthier financial state.

Hougang's latest financial statement shows it has $17.2 million in its residential sinking fund for its seven precincts.

Its PAP grassroots adviser Eric Low said last night that the Government will give a subsidy of $9.5 million to upgrade the lifts in the first batch of six blocks, while the town council's share of the cost will be 'just under a million'.

Earlier, the ward's opposition MP Low Thia Khiang of the Workers' Party told The Straits Times that the Housing Board had estimated his town council's share in the LUP cost to be about $17 million for all its seven precincts.

Recently, it gave the council about $5 million in a one-off financial assistance for LUP, he added, an aid given to all town councils.

wangekt@sph.com.sg

Additional reporting by Elgin Toh

ST : China to curb foreign investment in property

Nov 13, 2010

China to curb foreign investment in property

New rules for firms and individuals come as govt steps up efforts to limit flow of 'hot money'



Prospective home buyers at a real estate fair last month in Chengdu, Sichuan. To cool the property market, China has already tightened rules governing down payments and suspended mortgages for third homes. -- PHOTO: ASSOCIATED PRESS

SHANGHAI: China is setting new rules that will limit foreign companies buying property in the country, as it steps up measures to curb the flow of 'hot money', according to reports in the Chinese media yesterday.

Under the new rules, foreigners living in China will be allowed to buy only one residential unit for their own use, the state-controlled Securities Times reported, citing a statement issued by the housing and currency regulator.

The news was partly blamed for a sharp sell-off in Chinese stocks yesterday.

Before making home purchases, foreigners will have to provide statements showing that they do not own other properties in the country, along with proof that they have been employed for at least a year in China, the newspaper said.

In addition, foreign companies will be allowed to buy offices only in cities where they are registered, the paper said.

The newspaper did not specify when the policy would take effect.

China's central bank raised bank reserve requirements this week to tame inflation and restrain foreign capital after the United States Federal Reserve announced further quantitative easing.

China has also tightened rules governing down payments and suspended mortgages for third homes. Last month, it raised interest rates for the first time in three years.

'The government aims to curb both property prices and speculative capital, and the measures may have some impact on both commercial and residential property in big cities, which see more foreign capital,' said Mr Du Jinsong, a Hong Kong-based analyst at Credit Suisse.

However, he added, much would depend on how strictly the new policies are implemented.

Requiring foreign buyers to provide home ownership statements is a first for China, he said. In the past, foreigners were able to buy multiple properties in different cities because ownership records were maintained locally, he said.

Last month, China's property prices rose 8.6 per cent from levels a year earlier - the slowest pace in 10 months, the statistics bureau said this week.

After the data was released, the Royal Bank of Canada said the Chinese government would want to see further easing of property prices and the 'policy bias' would be in favour of more interest rate increases.

Policymakers might introduce more measures in the fourth quarter amid signs of a price recovery, according to Nomura Securities in a report on Nov 4.

Measures likely to be implemented include a property tax and the enforcement of a land value-added tax - levied on real estate projects that have increased in value - in cities seen as being 'overheated'.

BLOOMBERG

ST : Buy new home, get a free holiday

Nov 13, 2010

Buy new home, get a free holiday

Agents throwing in goodies to boost sales

By Cheryl Lim



To promote its Ascentia Sky project, developer Wing Tai Holdings is understood to be offering buyers up to four airline tickets for a winter ski trip to Hokkaido, or up to $10,000 in rebates, after they exercise the option to purchase. -- ST FILE PHOTO

AS HOME sales slow, developers and real estate agents are trying to drum up buying interest with carrots including cash vouchers, lucky draws and even holidays.

Among them is developer Wing Tai Holdings, which is holding a promotion at its Ascentia Sky project in Alexandra View.

The Straits Times understands that buyers who purchase the two-, three- or four-bedroom units will receive up to four airline tickets for a winter ski trip to Hokkaido in Japan, or up to $10,000 in rebates, after they exercise the option to purchase the unit.

A check with travel agents shows that a seven-day trip to Hokkaido starts from $2,000 per person.

When contacted, Wing Tai declined to provide more details.

Prices for a 1,012 sq ft two-bedroom unit start at $1,478 per sq ft (psf), or around $1.5 million.

Around 20 tickets have been given out since the end of last month, an agent told The Straits Times.

Almost 80 per cent of the development's 373 units have been sold.

Mr Colin Tan, research and consultancy director of property firm Chesterton Suntec International, is sceptical that such tactics will work.

He said that although this type of strategy gives a 'perception of value for money', it is likely to have a limited impact on buyers because such gifts are low in value when compared to the sale price of a condominium unit.

But the real estate agencies beg to differ - they say offering promotional incentives sets them apart from the competition and creates a distinctive brand image, while increasing agent recruitment at the same time.

Black Diamond Real Estate Group, which is marketing projects including iSuites in Marshall Road and Onan Suites in Onan Road, is one such company.

It encourages its agents to come up with 'fresh ideas' to market its projects.

Some 20 per cent of its 380 agents are offering promotions over the weekend, such as lucky draw opportunities for buyers to win consumer electronics like LCD television sets and washing machines.

Meanwhile, HSR Property Group hopes to attract more customers with the chance to win a Mercedes-Benz car. The lucky draw contest, which started in the first half of this year, is open to anyone who buys, sells or rents a property through the company's 3,000 agents.

This promotion joins the slew of HSR's monthly marketing activities, which include an 18-month home warranty scheme that provides free maintenance for a home's electrical, sewage, mechanical, lighting and air-conditioning systems.

At Lumiere, a 168-unit project in the Central Business District, one sales team is throwing in a free iPad with the sale of every apartment.

Team members, who are paying for the gifts from their own commissions, are selling a range of units priced at between $1.3 million and $2 million.

Property consultants say agents could be resorting to these tactics in an attempt to boost sales without offering discounts.

Home sales have taken a breather in recent months, they say, as the second half of the year is traditionally slower for the sector.

Still, prices have yet to drop. Private home prices rose 2.9 per cent in the third quarter compared with the previous quarter.

Mr Patrick Liew, director of the HSR Property Group, said these strategies to ramp up business work better than price reductions, which could backfire.

'If you always drop the price, sellers won't need us. Professionalism dictates we have to help them get the highest possible price.'

Offering incentives to make a home purchase is nothing new, but the wide range of perks now goes beyond the likes of the traditional furniture vouchers. This change in strategy could be due to a shift in consumer behaviour, said Mr Chua Yang Liang, research head at Jones Lang LaSalle.

'Today's buyer profile has changed, it's different from a generation ago. Looking at general market trends, we can see tastes have changed... This impacts what buyers are looking for and what incentivises them to buy,' he said.

But he warned that 'incentives are just marketing products and buyers at the end of the day will have to look at their finances'.

Mr Charles Chaw, a house hunter in his 40s, said gimmicks would not work for him and that property sales are best sealed by 'establishing trust and communication'.

cherlim@sph.com.sg

ST : Growing up with the HDB

Nov 13, 2010

Growing up with the HDB

By Warren Fernandez, For The Straits Times

MY EARLIEST memories of home begin with the HDB.

Most of my recollections of carefree childhood days are framed around a small three-room flat in Block 34, Toa Payoh Lorong 5. My family moved in soon after the block was built by the Housing Board in the early 1970s. It was one of those slab blocks with a long corridor, common in those 'rush-to-build' days. Most people kept their front doors open through the day, allowing the gentle breezes to flow through their homes. Neighbours would walk by and often stop to say 'hi'.

My family got along well with our Chinese, Malay and Indian neighbours. Families would often help one another out in simple ways, including occasionally minding each other's children. At festive times, there would be much exchanging of curries and kueh, sometimes gifts and hongbao.

These memories have informed my study of the HDB's work over the years, captured in a book, Our Homes: 50 years Of Housing A Nation. President S R Nathan will launch the book tonight, to coincide with the 50th anniversary of the Board's founding on Feb 1, 1960. The milestone is doubly significant since the HDB is expected to hand over the keys to its one millionth flat soon.

My memories of growing up in an HDB estate are happy ones - including accompanying my Chinese friends to Mandarin movies, like Agnes Chen tear-jerkers and Bruce Lee action flicks, at the new, air-conditioned Kong Chian cinema in the town centre. I joined boys of all races in many a football game played in a field at the foot of the block, in the void decks, along the corridors, or just about anywhere we could find.

I was too young to realise it then but this easy mixing of residents of different racial and social backgrounds had been deliberately put into effect by the nation's leaders to ensure ethnic integration, right from the beginning of HDB housing estates in the 1960s. We were the living consequences of these good intentions. Wittingly or otherwise, the formative years for many Singaporeans would become inextricably linked to those of the HDB.

The early years of the HDB saw rapid-fire building to tackle the housing backlog and provide much-needed shelter for the growing population. Many doubted the HDB was up to the task, which its predecessor, the Singapore Improvement Trust, had struggled with. Led by pragmatic men like the late Lim Kim San, however, the HDB decided to build simple flats - quickly and cheaply - to meet the people's needs.

By the 1970s, as more blocks began to rise from the ground, HDB leaders began to speak of 'breaking the back of the housing shortage'. They turned their attention to envisioning new towns, such as Toa Payoh. Swamps and squatters would have to be cleared, land acquired and villagers resettled, in a wrenching process of change.

Noting this in an interview for the book, Prime Minister Lee Hsien Loong said: 'Looking back, it looks so natural or inevitable, this sprouting up of housing estates all over Singapore. But each step along the way, from the clearing of squatters, the acquisition of the land, the building and so on, entailed much effort. In some cases, the unhappiness over resettlement remained for years, maybe never went away entirely.'

The 1980s was the 'upgrade' decade. With rising affluence came a desire for bigger homes with better finishings. The HDB was pressed to respond, with political pressures mounting, not only for new homes - and faster! - but also for residents to have more say in shaping their neighbourhoods. Town councils were introduced in the late 1980s to enable just that.

More attention was also paid to niceties, such as design, and giving each estate and precinct a look and feel of its own. Explaining this, former national development minister S. Dhanabalan said: 'One of the secrets of HDB housing was that the same design was repeated again and again, all over Singapore. So much so, that it used to be said that a contractor could go to the site and ask how many storeys, how many flats, and quote on the spot because he knew exactly what the cost was.

'We were worried that if this continued, then all HDB estates would end up looking the same, very uniform, all over the island. That would be horrible.'

The 'upgrading' trend would continue into the 1990s, but this time going wholesale, with the HDB unveiling its multibillion-dollar upgrading programme. The aim was to gradually bring the older HDB estates up to the standards of newer ones like Bishan. The programme proved politically popular - and controversial - and would be extended over the years, through a bewildering alphabet soup of programmes, from the main upgrading to the interim upgrading and the lift upgrading schemes.

I experienced this drama unfolding when, in the mid-1980s, my family 'upgraded' to a five-room executive flat in Yishun, then a brand new town. More than a decade later, however, I was filled with a sweet-and-sour mix of anticipation and nostalgia as I listened to Prime Minister Lee unveil, during his 2007 National Day Rally Speech, plans to remake 'middle-aged' HDB towns such as Yishun. The Northpoint mall and Golden Village cinemas, among the first HDB town centres to be built by private architects, and where I had courted my wife over many movies and hawker centre meals, would be transformed, just as had happened to my old haunts in Toa Payoh.

Today, the old 11-storey block in Toa Payoh where we lived has a new facade and lifts that stop on every floor. It is dwarfed by new 40-storey ones which replaced several old, rental blocks of one-room flats nearby. I recall only too well the dank and dark corridors of those blocks, and the crammed quarters my friends used to live in. So I am glad that they have become just pictures on a page of books on the story of public housing, their residents, hopefully, having moved up in life.

Over the years, the HDB has become so much a part of the lives of Singaporeans and Singapore that it is difficult to imagine what the country would be like without it. As Minister Mentor Lee Kuan Yew put it in an interview, without the HDB and its home ownership scheme, 'Singapore could not have been as politically stable as it has been. The disparities between the property owners and the non-property owners would have led to great antagonisms and governments would have been voted out.

'Here, they have got something valuable, and if you change a good government for a dud one, and economic growth slows, confidence flows out, your properties would go down in price.'

Put simply, the HDB has become a cornerstone in the building of modern Singapore. Without it, politics, race relations, and the physical face of Singapore would have turned out very differently.

The writer, a former journalist, is a global manager for Shell, leading a team looking at the future of the energy industry.

See Saturday Special Report

ST : Investors flock to recovering office market

Nov 13, 2010

Investors flock to recovering office market

Rising rents, low interest rates and strong Singdollar attracting foreign investment

By Esther Teo

FOREIGN investors are streaming into the fast-recovering office market here, attracted by the prospect of rising values and returns that might be sweetened by a stronger Singdollar.

Investors - many of them from Greater China - are keen on high-quality strata-titled offices, which allow them to buy, say, one office storey rather than a far more expensive entire building.

The local office market has turned a corner since the financial crisis dragged prime office rents down last year by more than 40 per cent compared to 2008 figures.

So far this year, third-quarter rents in the central areas are up by 13.5 per cent, according to the Urban Redevelopment Authority, though they are still 17 per cent under their 2008 second-quarter peak.

Property firm Savills Singapore has handled about one third of the deals worth $5 million to $50 million involving investment-grade office space this year. It says all of its six deals involved foreign buyers, up from two out of three last year when the market was considerably slower.

Inquiries on this market segment from foreign investors have also shot up by 20 per cent this year. The firm expects that to translate into a rising number of foreign clients betting on this segment of the strata-titled office market.

Sought-after space includes Suntec City, Springleaf Tower in Tanjong Pagar and The Central at Clarke Quay.

An analysis of Savills' client base for core central business district (CBD) deals in this price bracket showed that wealthy foreign buyers, family office funds or club buyers - typically groups of friends - made up the majority of investors.

Savills executive director of investment sales Steven Ming said he has seen more offshore investors, predominantly from mainland China, Hong Kong and Taiwan, entering the market.

'They've been investing in this market over the past 12 to 18 months but we're starting to see a heightened increase in the number of inquiries from foreign investors who are hoping to participate in the office market,' he added.

Another group of buyers: Foreign and local small and medium-sized enterprises which aim to occupy the space. They can borrow cheaply, given the low interest rates, and this protects them from rent rises.

A further attraction for local buyers is that office investments are unaffected by the Government's recent property measures.

The profile of some of these investors is similar to that of buyers of good-class bungalows (GCBs) as the sums involved are similar, Mr Ming added. 'Foreigners can buy office space, so unlike limitations to GCBs, it's a little bit more liquid because the world is your market,' he said.

Although buyers of office buildings tend to be institutions, private equity funds, sovereign wealth funds and real estate investment trusts, non-corporate investors have pumped in sums of $5 million to $30 million in this type of office space in core CBD locations this year.

Suntec City's largest floor plate, for example, is about 14,000 sq ft. Prices generally start from $2,200 per square foot (psf) and would set an investor back by about $30 million.

Strata-titled offices are a cheaper option for buyers keen on the office market but who are not able to pay more than $200 million for an entire building, Mr Ming said.

'Investors have been buying because there is a lot of liquidity in the market courting limited investment-grade real estate assets.' He said quite a few clients had bought office space this year which is returning 4 per cent a year in rent.

Office values could rise 5 per cent to 15 per cent next year and the returns for a foreign investor could be sweetened by further Singdollar gains as well, Mr Ming added.

The largest investment-grade deal under $50 million this year was a 2,003 sq m space at GB Building in Cecil Street at $30.5 million - or $1,415 psf. Suntec City, however, saw the most $5 million to $50 million deals, with 10 out of the 19 transactions occurring there, the Savills data showed.

Mr Ming said the average price for all strata-titled deals this year worth $5 million to $50 million was $1,631 psf, up 19 per cent from $1,375 psf last year.

Some investors are already cashing in their steep gains, though this is not widespread given longer term horizons.

A 10,742 sq ft office space at Springleaf Tower, for example, was sold for $17.89 million in September, seven months after it was purchased for $13.38 million.

Investors in Suntec City have also benefited from rocketing prices, with a 2,928 sq ft office space on the 40th floor of Tower Three selling for $2,450 psf, or $7.2 million, in September - 30 per cent more than when it was bought for $1,888 psf, or $5.5 million, in July last year.

Mr Ho Eng Joo, executive director of investment sales at Colliers International, said his firm is also getting more inquiries from overseas investors. 'Office values are still below their peak and, with rents expected to pick up in the future, overseas investors might see the office market as an alternative to investing in the residential market.'

esthert@sph.com.sg

ST : Strong take-up for Keppel's Lakefront Residences

Nov 13, 2010

Strong take-up for Keppel's Lakefront Residences

KEPPEL Land's newest residential project, The Lakefront Residences, has seen strong take-up, with about 250 units sold within a day of its preview.

Located next to Lakeside MRT Station, in the Jurong Lake District - set to be a major regional centre and leisure destination - the 629-unit condo development was sold at an average price of $1,020 per sq ft (psf), Keppel said yesterday.

Apartments range from typical one-bedroom units of 500 sq ft to typical four-bedroom units of 1,400 sq ft. The project includes 17 penthouse units of between 2,000 sq ft and 3,000 sq ft, it added.

Keppel said that it had been receiving inquiries for The Lakefront Residences from both local home buyers and investors alike, including residents and foreigners from China and Malaysia.

'The positive take-up...reflects home buyers' confidence in (its) strong value offerings of a prime location next to the Lakeside MRT station (and) the unique lifestyle and recreational amenities in the upcoming Jurong Lake District,' said Mr Augustine Tan, Keppel Land's president of Singapore residential.

The 99-year leasehold project - expected to be completed by the end of 2013 - is also located close to several schools, including the Canadian International School slated to open next year.

Jurong General Hospital and Jurong Community Hospital are also set for completion in 2014 and early 2015 respectively.

Experts say the location might have attracted upgraders from nearby private and public housing estates as well as employees from surrounding industrial employment centres and Nanyang Technological University.

PropNex chief executive Mohamed Ismail said while the project has set a benchmark price in the area, it demonstrates that buyers are willing to purchase properties with a good location and where they see a potential for upside.

Despite the recent property market cooling measures, these buyers might be confident that the local property market would have further strengthened by the time the project is completed in three years, he said.

'The rental yield will also be strong here as multinational companies might move into the area once it becomes one of the largest commercial centres... and (these firms) will start looking to rent,' he said.

Keppel Land had put in the top bid of $499 per sq ft per plot ratio, or $302.98 million for the hotly contested 1.61ha plot in May, reflecting the growing popularity of the area.

Plans for Jurong Lake District, covering 360ha - about the size of Marina Bay - will be implemented over 10 to 15 years, with two precincts.

Jurong Gateway precinct will be the biggest commercial hub outside the city centre with many government agencies, such as the Ministry of National Development and the Ministry of the Environment and Water Resources, and private sector business enterprises setting up headquarters by 2015. Lakeside precinct is to be turned into a world-class leisure destination for residents and tourists.

ESTHER TEO